Alternative small business finance firm Funding Circle has signed on to provide data to dv01, a reporting and analytics platform focused on boosting transparency in the lending markets. In a press release issued Thursday (Oct. 11), the companies said they have struck a partnership allowing institutional investors on the dv01 platform to analyze small business loan performance data from Funding Circle's U.S. operations.
"We are excited to partner with Funding Circle and make their U.S. data available to investors on dv01," the platform's founder and CEO Perry Rahbar said in a statement. "Funding Circle is a leader in small business finance and we are looking forward to working with them as they scale their business in the United States, making it easier for investors to analyze their rich performance dataset."
Data streaming from Funding Circle is normalized and validated by dv01, the companies explained. Investors must be approved to view that data and access reporting and analytics solutions.
In another statement, Funding Circle U.S. Managing Director Bernardo Martinez said the collaboration with dv01 "gives us a new way to be open with institutional investors interested in this asset class."
According to the press release, Funding Circle has facilitated $1.5 billion in small business loans through its platform, which connects small business borrowers with qualified investors. The company operates in the U.S., Germany and the Netherlands.
Last month Funding Circle raised about $396.3 million through its initial public offering (IPO) in the U.K., while in the U.S. the company's Funding Circle Income Fund has pulled back its exposure to the market, instead enhancing its U.K. operations through an initiative with the British Business Bank.
The company reported a slight increase in the number of U.S. loan defaults in August compared to July, though Funding Circle emphasized that the defaults represent "well within normal month-to-month statistical variability."